Otherwise, if you already have a hunch of how you can stand out, make sure, before you take it and run with it, to test the idea on an audience of customers and non-customers alike to measure how much impact your differentiation strategy will have on their perception of your brand. Vertical Differentiation. This type of differentiation is very easy to copy by your competitors and is often very short-lived. Product Differentiation – Creating a product with better features, performance or efficacy. To explain their “bare fare” business model, they had actors in an ad strip down to their undies as a metaphor—something that would seem off-brand and potentially even creepy if it were attempted by, say, United Airlines.

Brand identity can be difficult to manage — the brand identity of a business is impacted by consumer response, but can be driven and shaped by your marketing efforts driven by your differentiation strategy. It made the car ‘fast’ because it wanted to appeal to a specific group of people. Who are the competing organizations and what do they offer? Differentiation is more than a strategy or series of strategies – it's a way of thinking about teaching and learning.

Positioning your product or service in the mind of the customer is key to setting yourself apart and occupying a different place in the customer’s mind.

Customer service, experience, and advertising campaigns are also relevant. Know your market. Request a free consultation and speak to one of our business accountants & advisors. If you are seeking guidance and a tried-and-true process for unearthing your differentiation, we offer a half-day, in-depth 3 Secrets to Creating a Magnetic Brand workshop that is designed to help you do just that. And while you probably know this is an issue that will eventually jeopardize the company, perhaps you simply don’t have enough capital, labor, or other resources to find and implement a quick, turn-around solution. This has made it very important for businesses to make their customers understand what different they have to The most important factor to consider when assembling a differentiation strategy is whether or not the differentiators you choose to highlight deliver value to your potential customers. There are many factors that may differentiate your business from competitors. It also gives them a better chance to compete against more popular products. In order to create an effective differentiation strategy, it’s important to explore and assess similar businesses that operate in the same marketplace and identify those that offer similar products and services. If you know that competitors will have more features (because they have more money), great positioning takes the focus off the features of the product and is the best way to separate yourself from the competition. Take what you need, build the best business you can and hope to see you accomplishing great things. Examples of Mixed Differentiation: Vehicles of the same class and similar price points from two different manufacturers.

Also called “simple differentiation,” mixed differentiation refers to differentiation based on a combination of factors.

They know that there are plenty of women who, while wanting to look good, are sick and tired of all of the chemically-laden products, mass-production side effects, and cruel animal testing that runs rampant in the beauty industry, and so Lush differentiates on all of it to appeal to those very women.

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